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By Brittany Fisher
Nobody is ever too young (or too old) to take control of their own life. For this reason, estate planning is highly recommended, even for young adults. In fact, it’s something that should be undertaken the moment a person turns 18 and is legally out of their parents’ care. After all, nobody can say for certain what life will bring, and it’s important to be prepared for eventualities.
No doubt, estate planning is the best way to do exactly that as it plans for the handling, management, and dispersal of assets and financial obligations in the event of one’s death. Moreover, it’s also a great way to ensure that one is properly taken care of in case of illness or injury that leaves one helpless and incapacitated. That’s why the Old Dawg’s REI Network invites you to take a look at your options.
Get Insured
First thing’s first: insurance is often touted as a real financial must-have in every person’s life, regardless of age. For most people, this is to ensure that their loved ones are provided for in case something happens to them. More often than not, though, this is something that most young people can’t appreciate, especially when they are yet to have a family of their own. But the fact is, as Anderson Retirement Solutions notes, life insurance matters to young adults because this can cover debts that you might leave behind.
To determine your coverage needs, get an approximate total of your debts and assets, as well as lost future income if you’re raising a family. If you’re a homeowner, ascertain your home’s worth and equity. Having as much financial information as possible ensures you choose the proper amount of coverage. Keep in mind that many employers offer perks like life insurance as a benefit, so speak with someone in HR to see if it’s available. Remember: the sooner you purchase life insurance, the lower your premiums will be.
Create a Will
Creating a will is not the be-all and end-all of estate planning, but it is a significant part of it. In a nutshell, a will is a legal document wherein you can specify inheritance of your assets, or guardianship of your children—or in the absence of either, where your worldly possessions should go. This is crucial because the lack of a will might cause your assets to get tied up in probate court for years, which can be inconvenient to the people you leave behind. For this reason, it’s definitely more than wise to add this to your estate planning checklist.
A living will is another item you should look into. Essentially, this is a directive in which you can specify who should make healthcare decisions for you, including difficult end-of-life decisions, when you’re unable to make them yourself. Be sure to keep this document updated as major events occur in your life; for example, if you get divorced, make sure to update your will to exclude your spouse, if you so choose.
As with your will and your insurance paperwork, it’s important to keep all your documents organized. A good way to do this is by digitizing these “paper” records and other documents. When digitizing your records, instead of using many files, this free PDF merger tool can keep all their documents in one file, which will cut time on having to find a document. Once you combine PDF files, you can move PDF pages to get their records in the right order.
Designate a Power of Attorney
With pretty much the same rationale as a living will, you can also consider assigning someone you trust as a proxy through a power of attorney. Aside from being able to make healthcare decisions for you when you’re incapacitated, a power of attorney will allow your proxy access to your medical records, as well.
You can also execute a durable power of attorney for financial decisions, as well. Again, this document will give your proxy access to your financial accounts when needed. National Law Review points out that it can be very useful for young people who are still finding their way in the adult world to assign a parent as such. It can even come in handy for adults living abroad who need a parent or trusted individual to take care of financial matters back home.
Think Long Term
No one relishes the thought of having to leave their home, but if health concerns require you to move into assisted living, that’s a choice best made by you, rather than your family. So it’s a good idea to research the top facilities in your area—including their amenities, prices, and reviews—and make sure your preferences are known, should the need arise.
Everyone should have a sound estate plan to go through life, and young adults are not exempted. In fact, it may even be more important to start taking such responsible steps at a young age as it can certainly provide you with the peace of mind and security that ultimately allows you to live your life to the fullest.
